Asia Media gets nod for rights issue with warrants
BY SHARIDAN M. ALI
KUALA LUMPUR: Asia Media Group Bhd, the country’s largest transit-TV network operator, has gained shareholders’ approval for its proposed rights issue with warrants.
At yesterday’s EGM, up to 752.4 million new ordinary shares along with up to 188.1 million free new warrants that could raise between RM19.6mil and RM97.8mil were approved.
The company plans to utilise the proceeds to fund its expansion and rollout of digital terrestrial television broadcasting (DTTB) on its transit-TV network.
The proposals are expected to be completed in the third quarter of this year, with the proceeds raised to be utilised within 12 to 18 months from the date of the listing of the rights shares.
Chief executive officer Datuk Ricky Wong Shee Kai told StarBiz that the proceeds raised would be used for the construction of broadcasting infrastructure such as communications towers, repeaters and gap fillers.
“It would take about one to two years for completion. With these investments, we are adding live broadcast capabilities and would contribute positively to our revenue and profits,” he said.
According to a company statement, Asia Media had recently completed the construction of five transmission towers in the Klang Valley situated in Puchong, USJ 19, Berjaya Times Square, Bukit Lanjan and Bukit Sungai Besi.
The company is committed to investing in the country’s telecommunications infrastructure, and to date, remains the only substantial private-sector investor in Malaysia’s DTTB infrastructure.
The funds raised would be used to construct transmission towers covering most of Peninsular Malaysia (in Johor Baru and Penang).
“The rationale behind the proposal to raise further capital from shareholders is to allow the company to remain in control, avoiding reliance on Government grants or taxpayers.
“The company expects returns to come from increased advertising across the network and capturing business from the traditional print and audio/visual media, which would contribute to both the top and bottom lines once live transmission is rolled out,” said the company.
Asia Media is also focused on improving its services in line with the technological age, and as such, plans to implement cross-selling opportunities via social media and apps.
“This would implement interactive consumer or advertiser behaviour in a way never seen before. In addition, advertisers would benefit from improved interaction and real metrics of their campaigns with Asia Media, which shows how effective a campaign is,” Wong added.
Publish date: 30/07/13